Malta FA president Norman Darmanin Demajo is hoping that the introduction of a reduced 7.5 per cent cent tax rate for footballers would spur local clubs to “do things right” when it comes to declaring their wage bill.
Describing the measure as “fair”, Darmanin Demajo called on the clubs to respond favourably to the fiscal measure announced by Finance Minister Edward Scicluna during his 2014 budget speech.
“The tax measure announced in the budget was part of wide-ranging discussions the MFA had with the government with the aim of helping our clubs become more professional,” Darmanin Demajo said during yesterday’s Council meeting.
“We also spoke about the lease agreements (for premises run by clubs), different forms of ownership, accountability and transparency.
“I have to say that we’ve received a lot of help from the government during the time I’ve been serving as president of the Malta FA.
“The government has now introduced a final settlement tax of 7.5 per cent for footballers. This is a step in the right direction.
“The ball is in your court now. Everyone knows that clubs pay wages to their players and I urge you to regularise your position.
“If need be, players should be made to pay tax on their income.
“The government has invested a lot in football and I believe it’s only fair that we reciprocate and give something back.”
Darmanin Demajo is clearly determined to ensure that the clubs clean up their act. While encouraging them to make the first step by acquiring a PE number, Darmanin Demajo warned that, in the future, clubs who request the assistance of the MFA will be asked to produce their PE.
“This is a very fair measure,” he said of the special tax rate.
“I urge you to do things right.”
Also yesterday, the MFA Council was forced into a U-turn as it upheld the decision taken by the Executive Committee to revise the payment terms of the €10,000 fine imposed on Ħamrun for match-fixing.
Last month, the MFA Council had voted to overturn the Exco decision to allow the Spartans to pay the fine in two installments, €5,000 by November 3, which payment has already been effected, and the remainder by December 31.
The Spartans, now playing in Division One, were handed a seven-point penalty and a fine of €10,000 on September 3 after two former committee members were found guilty of rigging seven Premier League matches involving their team last season.
Ħamrun had originally pleaded with the Malta FA to be granted eight months to pay their fine but their request was only partially upheld by the Exco.
Nevertheless, several Council members were very critical of the decision, arguing that it sent out the wrong message about the association’s fight against match-fixing.
The Council voted to reverse the decision despite being told in no uncertain terms by MFA vice-president Chris Bonett that a decision taken by the Exco can only be annulled if there was a blatant breach of the regulations.
Darmanin Demajo yesterday held up his hands, admitting that he made a mistake.
“I made a mistake as I shouldn’t have allowed the matter to be put to vote as this was against the association’s statute,” Darmanin Demajo said. “I assume responsibility for this, I have no problems owning up to my mistake.”
Reacting to the Council’s decision, Ħamrun Spartans wrote to the MFA seeking the go-ahead to appeal the decision but that was avoided yesterday as the Council members overwhelmingly voted in favour of a motion to revoke its ruling and confirm the decision taken by the Exco.
Reforms
Dr Bonett briefed the Council members about the on-going exercise to revise the association’s regulations, particularly the sections on the transfer of players, competition rules and clubs’ licensing.
The MFA vice-president said the whole package of reforms will be presented to the Council in March.
Bjorn Vassallo, the MFA CEO, touched on the change of the Premier League format for next season.
Vassallo said the crucial points depend on the consultation with clubs. The MFA will be discussing the new format with the Premier League and Division One clubs stan-ding committees, members of the media and fans of the leading clubs.
“We are looking at four options which have several variations,” Vassallo said.
“Some proposals look more attractive than others. Our plan is to conclude this process by February so that in March, everyone would know what’s going to happen.
“It seems that the feeling of the clubs is that we should remove the points-halved system. We are striving to come up with a different idea to try and keep the interest alive until the final stages of the league.”
Vassallo announced that the draw for the 2014 UEFA U-17 Championship, to be held here from May 9-21, will be made at the St James Cavalier on April 9.
Also yesterday, the MFA Council turned down a request made by former Malta midfielder George Mallia who asked the association’s permission to take legal action against Qormi over unpaid wages.
Mallia, who retired from football a couple of seasons ago, can’t seek redress with the Malta FA as his case is time-barred.
Meanwhile, the MFA Players and Coaches Complaints Board has ordered Floriana to pay €4,500 in wages and allowances to Daniel Bogdanovic.
The forward, who has also been granted an unconditional release by the club, had been suspended following a training-ground clash with Jonathan Xerri but the board ruled that the suspension was invalid as Floriana failed to follow the procedure as stated by the MFA.
It has also emerged that Floriana have settled their financial row with Anthony Warner over outstanding wages and allowances after their former goalkeeper confirmed that he has been paid in full by Floriana.
The Greens have been ordered to pay interest on the amount due, just over €17,000, to Warner up to the day the English goalkeeper confirmed that the payment had been finalised. The MFA also imposed a transfer prohibition and fine on the Premier League club.